Business owners should always be alert for reducing
operational costs, but this is even more important in
challenging economic circumstances such as those emerging
recently. A joint credit card processing and working
capital management strategy will be a vital part of such
cost-reduction efforts.
Credit card processing is often one of the most overlooked
working capital management issues for a business owner. An
effective processing program can eliminate many credit card
factoring difficulties by implementing appropriate working
capital management cost-reduction alternatives.
Credit card financing improvements can provide dual working
capital business loan benefits by both eliminating credit
card processing problems and providing improved cash flow
by enhanced management of a business cash advance program
and business financing strategies. The total cost benefits
of combining programs in this manner can be impressive and
valuable in efforts to increase business profitability.
As I noted in an earlier commercial loan article, for any
business that accepts credit cards as a method of payment,
a business cash advance (obtained via credit card
processing and credit card financing) is a critical working
capital financing tool that is often overlooked. Even
thriving businesses frequently need more capital than they
can borrow via a business loan from a bank. However, what
is typically even more overlooked by many business owners
is the opportunity to reduce their operating costs at the
same time that they obtain additional cash.
Credit card receivables financing is an excellent
alternative to consider when a merchant is seeking a
short-term business loan, an unsecured commercial loan and
improved strategies for credit card processing and
management. However, there are a number of working capital
management difficulties to be avoided with all of these
programs. As with most successful business financing
strategies, there will typically be only a few lenders that
are effective at properly executing the combined tasks.
Because of this, the prudent choice of an appropriate
provider of credit card processing and credit card
factoring is of critical importance to any business owner
that accepts credit cards. To help demonstrate which
providers to avoid, I have written a special report which
identifies ten key problems which should be avoided.
For merchants either displeased with their credit card
processing services or wondering if cost reductions are
achievable, a receivables financing program which
eliminates all of the ten critical working capital
management difficulties described above should be seriously
considered. One of the key reasons for evaluating these
functions in this joint fashion is that the low-cost
providers of the best business cash advance services will
probably be using the lowest-cost and best providers of
processing services.
In many cases, the best and lowest-cost providers of credit
card processing are simply not available to the average
business owner other than as part of a working capital
management plan encompassing both factoring and processing.
However, the economies of scale realized from the
combination of these two services will almost always be
worth the coordination efforts.
Merchants should not lose sight of the substantial working
capital management advantages which are likely to accrue to
their business by effectively combining credit card
financing and credit card processing services. As described
above, reduced costs and cash flow improvements are major
goals of successful funding alternatives, and the prudent
coordination of financing strategies should accomplish both
of these difficult goals together.
The maximum benefits produced by the coordinated working
capital management strategies described in this overview
will accrue to businesses which are seeking to raise
additional capital as well as reduce operating costs. While
these joint goals are likely to be desirable for any
successful business, the approaches noted here will only be
available to businesses which accept credit cards as a
regular form of payment for their products or services.
----------------------------------------------------
Steve Bush is a commercial real estate investment loan
expert - learn how to avoid business finance mistakes and
find out about business opportunity loan strategies at AEX
Commercial Financing Group =>
http://aexllc.com
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